01/17/2005
We have been asked by the local Knights of Columbus to finance the rehabilitation of their building. The Knights are a break-even operation and cash flow is minimal. Can we make a $150,000 loan and provide them $100,000 for the rehab and escrow the remaining $50,000 for servicing the debt repayment without receiving criticism from regulators and having the loan listed as substandard?
11/01/2004
Question: We are making a home improvement loan to a customer. Can we prepare disclosures the way we would for construction loans?
10/18/2004
It was mentioned at a webinar that the property taxes collected at closing need to go on line 1003 of the HUD-1 Settlement Statement but also on a line in the 800 section. Could you further explain what is supposed to be put in the 800 section?
10/18/2004
During a RESPA phone seminar, we were told that we need to include escrow reserves on the Good Faith if we know the customer wants to escrow his taxes and insurance. Taxes are not hard, we can easily figure when those are due. Insurance on a refinance is different. What do we put on the good faith if we have no idea when their insurance is due?
10/04/2004
When we have an overage in an escrow account for a loan that has been paid off, where do the funds go and when do they have to be disbursed? What regulations address this?
09/06/2004
We have two customers at our institution who are delinquent on their mortgage loans and have now filed bankruptcy. Each carries mortgage life and disability insurance on their loan with the monthly premium included in the escrow portion of their payments. We remit the premium monthly to the insurance company. Do we have the right to cancel these policies because of nonpayment to us?
08/16/2004
We have several real estate loans that we are refinancing. The existing loans have escrows. The new loans will have escrows as well. What kind of a procedure do we need to go through to transfer the escrow balances to the new loan: Do we need to do a short year escrow analysis on the old loan and an initial escrow disclosure on the new loan?
06/21/2004
When we do our annual analysis and find out there are excess funds in an escrow account, can we apply the funds to payments that are delinquent? The accounts are more than 30 days delinquent.
06/21/2004
If the initial escrow statement doesn't depict any disbursements, is it out of compliance?
05/17/2004
We want to change our escrow computation year to be more in line with the date taxes are due. What is involved? From what I read, it seems to indicate that we can file a short-year statement within sixty days after the start of the new computation year and then just adopt the new computation year. Is there something I am missing? Is there any best practice on how to structure an escrow year/cycle?